Acquiring Second Property
I'm currently looking into a second property that already had a tenant through hud. FMV=72k, asking=54k,rent=600/mo, and will inspeact for repairs this weekend. I think this what they called "turn key" process. I know i want to review the current lease,but what questions should i ask the current owner/investor on the situations?
I recently brought a property
FMV-74
Sales Price-56
Got in with none of my own money.
Tennant already exist.
The best thing to do is talk to the tennant they will give you the whole spill of the place. Let them know that you are a prospective new Landlord for the property and you want to know what kind of complaints they have with the property. Guaranteed to tell you what you really want to hear.
I agree that the tenant will "spill his.her guts" when asked what problems exist. I would ask the owner for payment record of the tenant and previous credit checks (may not give this, but worth asking). Additionally, ask for maintenance records of the property so you know what has been done on his watch and by who. Find out what the rental rates are in the area to see where your new property stands, if you are below market you may want to bump up the rent when the lease expires. Hope this helps. Good luck
Thanks for the advise. Now i know what to expect. I do know this house is rented 100% through hud, so the payments are there. I'm attending a hud workshop next month, i do know hud inspects the condition of the property so often,and if the tenants don't follow the lease terms (not trashing the place)the programs is over for them. One of the properties has a 4 year tenant, which i do like.